Govt scraps basic customs duty on crude palm, soya and sunflower oil
The government on Tuesday scrapped basic customs duty as well as slashed agri cess on crude varieties of palm, soyabean and sunflower oil till March 2022.
This is expected to help cool prices and increase domestic availability in the festive season.
However, industry players said the timing of the duty cut is likely to impact domestic farmers and consumers may not benefit much as exporters have factored in and hiked the prices.
The duty cuts will be effective from October 14 and will remain in force till March 31, 2022, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification.
Crude palm oil will now attract cess of 7.5 per cent, while the cess will be 5 per cent each for crude soyabean oil and crude sunflower oil. Earlier, the cess was 20 per cent, while basic customs duty was 2.5 per cent.
B.V. Mehta, executive director, Solvent Extractors’ Association of India said “the timing of reduction of import duty is a cause of concern as farmers are now harvesting record kharif soya and groundnut crop and reduction in import duty may affect the farmers’ realisation for their produce.”